Philips Healthcare Overview

Steve RusckowskiCEO Philips Healthcare

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Executive summary

Exited 2008 with solid growth• Gained market share• Slight improvement in margins• Integrated acquisitions well

Entered 2009 with a very challenging market• Real-time management of performance• Focus on areas of growth such as services, home

healthcare and emerging markets

Positioned well long-term as global healthcare needs increase

• Care cycle approach– Better patient outcomes– Reduced healthcare system costs

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We continue to be focused on three areas

1. Increase presence in emerging markets2. Expand mid / low-end product offering 3. Increase sales to home healthcare4. Drive growth in healthcare informatics5. Leverage patient/care provider brand

1. Expand low cost country sourcing2. Improve product reliability costs3. Increase service productivity / effectiveness4. Optimize market approach5. Improve quote to cash

1. Capture value from existing acquisitions2. Pursue new acquisitions in strategic areas

Accelerate Growth

Increase Margins

Capitalize on Acquisitions

Focus Areas Initiatives

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Looking ahead

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Globaltrends

Better healthcare for all at lower cost

Home care, independent living

Personal well-being

Personalized experiences and atmospheres

Energy efficiency

Philips opportunitiesInsight

Urbanization and rise of emerging markets

Aging population

Consumer empowerment

Climate Change

Sustainable development

Health and Well-being

People want to live a healthy, fulfilled life

“Health”• Medical care• Living a healthy

lifestyle

“Well-being”• A sense of fulfillment,

feeling good and at ease

• Feeling comfortable, safe and secure in our environment

Philips is well positioned to address global trends to fuel our Health and Well-being opportunity

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Focused on the greatest needs

Cancers andcardiac disease:• Are the world’s

greatest killers• Present specific

challenges in women’s health

Women responsiblefor 90% of healthcare decisions

Projected global deaths for selected causes2004-2030

Source: World Health Organization – Global Burden of Disease 2004 Update

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The Philips Healthcare difference

We start with the needs of patients and their care providers because understanding their experiences ensures we create solutions that best meet their needs.

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The Philips Healthcare difference

We focus on their specific medical needs throughout the care cycle…

CardiologyWomen’s Health

Oncology

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The Philips Healthcare difference

CardiologyWomen’s Health

Oncology

...wherever that care occurs.

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The Philips Healthcare difference

And we apply our technology to help improve healthcare quality and reduce cost because meaningful innovations create value for patients and care providers.

CardiologyWomen’s Health

Oncology

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Hospitals continue to suffer from the increasing costs of providing healthcare

% US hospitals reporting decreased margin performance 1st quarter 2009 versus 1st quarter 2008

Requiring our solutionsto deliver validated,improved patient outcomesat lower cost

Source: American Hospital Association Rapid Response SurveyThe Economic Crisis: Ongoing Monitoring of Impact on Hospitals (March 2009)

0%

10%

20%

30%

40%

50%

60%

70%

Total Margin

Significant decrease Moderate decrease

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Home healthcare is required based on current realities

In the U.S. chronic disease represents• 70% of all deaths• 75% of healthcare costs

Worldwide chronic disease represents• 60% of all deaths and growing

Care Cycle focus on early detection, intervention and management is

increasingly needed in the home

Worldwide trend in deaths from chronic diseases

Num

ber o

f Dea

ths

(milli

ons)

50

40

30

20

10

02005 2015 2030

Source: World Health Organization, CDC

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People Focused. Healthcare Simplified.

Care anywhere

Peoplefocused

Care Cycledriven

Meaningful innovation

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Philips Healthcare organization

GeographiesBusinesses

CEOSteve Rusckowski

Functions

Imaging SystemsGene Saragnese

Clinical Care SystemsBarbara Franciose

Healthcare Informatics/Patient MonitoringDeborah DiSanzo

Customer ServicesGreg Sebasky

Home Healthcare SolutionsDon Spence

Business ExcellenceJohn Hamilton

Legal/Q&RClement Revetti

CTODiego Olego

CMO/Strategy Kristina Isakovich

Human ResourcesJean-Luc Duchemin

CFORon Wirahadiraksa

Chief Medical OfficerEric Silfen, M.D.

North AmericaBrent Shafer

Emerging MarketsRonald de Jong

InternationalKevin Haydon

OperationsJohn Haydon

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